Paddy farmers struggle to cover farming costs 

*    Farmers now selling paddy at Tk 650-Tk750 per maund, compared to Tk1,000-Tk1,200 last year
*    High fertiliser prices, disrupted electricity supply and costly irrigation raise expenses

*    Bangladesh imported 12.68 lakh tonnes of rice in FY2025-26 

A good harvest has failed to bring relief to Bangladesh’s Aus paddy farmers as falling market prices, high production costs and weak demand from rice mills continue to squeeze growers across the country.

Farmers in the country’s major rice-producing regions are being forced to sell their produce at prices that often fail to cover production costs, leaving many distressed immediately after harvest when they need cash to repay loans and meet household expenses.

Naogaon, one of the country’s major rice-producing and trading hubs, has witnessed a sharp decline in Aus paddy prices. Farmers in several markets are selling paddy at Tk650-Tk750 per maund, compared with Tk1,000-Tk1,200 during the same period last year. Prices of major varieties have fallen by Tk300-Tk400 per maund year-on-year.

Similar pressure has been reported in Rangpur, Kishoreganj’s haor areas, Faridpur and other regions, indicating a broader nationwide problem. Farmers say high input costs, weak demand and uneven government procurement are eroding their margins.

Rasel Hossain of Uttargram village in Naogaon’s Mohadevpur cultivated Aus on about 11 bighas, spending Tk14,000-Tk15,000 per bigha. With yields of 12-16 maunds per bigha and an average selling price of around Tk725 per maund, he is struggling to recover his investment. "At this rate, I am incurring a loss of Tk4,000 to Tk5,000 per bigha," he said.

Another Naogaon farmer, Anwar Hossain, recently sold Jirashail paddy for Tk880 per maund, compared with Tk1,300-Tk1,400 for the same variety last year. Farmers said they are often compelled to sell immediately after harvest because they need money to repay loans and cannot afford storage.

The problem is not confined to Naogaon. In Faridpur's Boalmari, farmer Sukanta Paul said his production cost was at least Tk1,000 per maund, while he sold Aus paddy for Tk950-Tk1,100. High fertiliser prices, unreliable electricity and costly irrigation have further increased expenses.

Northern farmers have faced similar pressure. In Rangpur, Dinajpur, Bogura and Joypurhat, Aman paddy that had been selling for more than Tk1,250 per maund fell to Tk1,050-Tk1,100 ahead of the Boro harvest earlier this year.

In Kishoreganj's haor areas, farmers also reported a wide gap between government procurement and open-market prices.

During the Boro season, paddy was selling for Tk850-Tk1,100 per maund in some flood-prone areas, against the government procurement price of Tk1,440. Farmers and traders attributed the weak market to low mill demand and uncertainty over rice imports.

The latest decline in Aus prices has come amid substantial rice supplies. Food Ministry data cited in recent reports show food-grain stocks reached 23.41 lakh tonnes on September 12, up from 18.67 lakh tonnes a year earlier. Bangladesh also imported 12.68 lakh tonnes of rice in FY2025-26.

Millers say large stocks have weakened wholesale demand, reducing their need to purchase fresh paddy.

Farhad Hossain Chakdar, General Secretary of the Naogaon District Rice Mills Owners' Association, said many millers were already holding unsold stocks. As rice sales slowed, they reduced paddy purchases, putting further pressure on farmgate prices.

Rice prices have also declined in Naogaon, with Jeera rice selling at Tk56-Tk61 per kilogramme, Katari rice at Tk73-Tk74 and coarse Swarna rice at Tk42-Tk44.

Naogaon District Agricultural Marketing Officer Sohag Sarkar said Aus production costs had risen to Tk26-Tk27 per kilogramme. The local agriculture authorities regularly report production costs and weekly market prices to the government but do not have the authority to independently set a minimum market price.

Food Ministry Secretary Abu Taher Md Masud Rana said he was not aware of the decline in Aus paddy prices. "We will collect information from the field level. If necessary, steps will be taken," he told this correspondent.

Bangladesh Bureau of Statistics data show Aus production fell 3 percent in FY2025-26 to 27 lakh tonnes from 27.9 lakh tonnes a year earlier. Aus cultivation also declined 1.44 percent to 9.45 lakh hectares as farmers increasingly shifted to crops offering better returns.

The Food and Agriculture Organization, however, estimates 2026 Aus production at around 4.1 million tonnes and forecasts total paddy production in 2026/27 at 61.9 million tonnes, about 5 percent above the average.

Agricultural economist Jahangir Alam Khan said government grain imports should be planned in line with domestic harvest cycles and market supply so that imports do not coincide with periods when farmers bring their crops to market.

Economist Abdul Bayes said expanding Aus cultivation was important because the crop can reduce pressure on groundwater compared with irrigated Boro cultivation, particularly in the Barind region. 

He suggested introducing a specific procurement price for Aus and increasing investment in agricultural research and development.

Farmers and millers have urged the government to expand direct paddy procurement during the Aus season and explore alternative uses, including biofuel production from low-demand varieties.

Without timely intervention, continued losses could discourage farmers from cultivating Aus further, potentially undermining efforts to diversify rice production and reduce dependence on groundwater-intensive Boro cultivation.